Truly Accountable Marketing By Ken Puwels Summary

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Synopsis
The article Truly Accountable Marketing: The Right Metrics for the Right Results written by Koen Pauwels begins with the author referencing a study that indicated that “companies who deploy marketing analytics obtain 21% more return on assets.” It is his opinion that “marketing accountability is essential for sustained organic growth.” He goes on to explain the three essential steps to truly accountable marketing as defining the right results, using the right metrics, and acting on the collected insights. The article further discusses the advantages of slidebars to demonstrate how small and large changes in marketing affect profitability. An example of this is the difference between the cost and profitability of the use of flyers
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Determining the “right results” is based on measures that positively combine marketing and finance. Pauwels further addressed the “right metrics” such as sales, profits, and customer attitudes from a standpoint of converting brand attitudes into profits. In one of Pauwels’ books, he details how he “tested which attitudes are leading key performance indicators and which drive hard performance over time.” According to an analysis conducted by Raimond Wildner and Guido Modenbach, two-thirds of brands obtained a sales revenue lift greater than the cost of advertising. Although attitude metrics as proven to be a beneficial component in marketing, the practice also has a downside. Attitude metrics, generally requires the administration of surveys to obtain information. This method can be costly and time consuming. In instances where time is of the essence, a better option would be to obtain metrics on online customer actions. Online metrics, although it provides faster and cheaper results, has a negative aspect in that the results do not represent the company’s entire customer market. Because both metrics possess beneficial attributes, Pauwels recommends …show more content…
The last element of the AIDA model is Action. AIDA is an acronym for Attention, Interest, Desire, and Action. The concept of marketing is often only considered in the sense of presenting a product or service to the optimum number of targeted consumers. This is a very narrow view of the practice, however as the ultimate goal is to entice the consumer to make an actual purchase. This portion of marketing is what is referred to in the “Action” phase of the AIDA model. As Pauwels mentioned in his article, many methods of marketing will draw consumers to the business however research has proven that some methods are more likely to result in an actual purchase. The ultimate goal of marketing is to transition customers’ desires into purchases or to use the terms of the AIDA model, to transition “desire” into “action”. Marketing alone is not sufficient as the ultimate goal is to produce profits. Methods that coincide with this line of thinking are the methods that increase the ROI (return on

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